PPD acquires vaccine testing lab from Merck, hires 80

WILMINGTON, N.C. A contract research organization and a large drug maker have entered a partnership to test vaccines.

PPD announced Monday that it had purchased a 130,000 square-foot vaccine testing lab in Wayne, Pa., from Merck & Co. and hired almost 80 Merck employees working there. PPD will provide Merck with assay development and immunogenicity testing services to support Merck’s vaccine portfolio for five years. Under another agreement, PPD will provide central lab and sample storage services to Merck for its clinical development work, also for five years.

PPD said its purchase of the Pennsylvania lab expands its global central lab business and adds vaccine and biologic testing, assay development and sample storage capabilities to its current laboratory business.

“We believe strategic outsourcing is key to the future of R&D and represents an innovative approach to the challenges facing our pharmaceutical and biotechnology clients,” PPD CEO Fred Eshelman said in a statement. “This collaboration with Merck represents a unique opportunity for us to acquire leading scientific talent and state-of-the-art facilities, expand an existing relationship with a long-term client and offer a new service line to other customers in the growing vaccine market.”